Question

The federal reserve act of 1913 delegated monetary policy authority to the Federal Reserve System for two reasons. What are the two reasons?

Answer 1

1913 federal reserve was brought to stabilize the economy. By the at it was given power to print money to 12 regional independent Bank so that it can brings stability in the system.

Two reason for this act are,

1. It was proposed to provide the nation with a safer, more flexible, and more stable monetary and financial system.

2. Increasing money & credit conditions in the economy in pursuit of full employment and stablity in price.